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Intangible assets, net and goodwill
 12 Months Ended
Dec. 31, 2022
Text block [abstract]  
Intangible assets, net and goodwill
Note 11. Intangible assets, net and goodwill
a)
An analysis of intangible assets at December 31, 2020, 2021 and 2022 is as follows:

 
  
For the year ended December 31, 2020
 
 
  
Balance at
beginning of
year
 
 
Acquisitions
 
  
Acquisitions
in business
combinations
 
 
Disposals and
other
 
 
Amortization
of the year
(1)
 
 
Effect of
translation of
foreign
subsidiaries
and
Hyperinflation
adjustment
 
 
Balance at end
of year
 
Licenses and rights of use
   Ps. 246,100,862     Ps. 15,079,714     Ps. 4,436,313     Ps. 1,502,981     Ps. —       Ps. (14,029,709 )    Ps. 253,090,161  
Accumulated amortization
     (134,667,883 )      —         —         (165,803 )      (14,002,802 )      14,227,424       (134,609,064 ) 
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Net
     111,432,979       15,079,714       4,436,313       1,337,178       (14,002,802 )      197,715       118,481,097  
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Trademarks
     27,419,008       162,309       12,110       4,000       —         1,534,938       29,132,365  
Accumulated amortization
     (23,930,299 )      —         —         (136,028 )      (168,975 )      (1,119,645 )      (25,354,947 ) 
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Net
     3,488,709       162,309       12,110       (132,028 )      (168,975 )      415,293       3,777,418  
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Customer relationships
     22,875,011       1,935       2,689,718       (5,763 )      —         4,018,365       29,579,266  
Accumulated amortization
     (19,775,630 )      —         —         (845,089 )      (808,293 )      (3,996,593 )      (25,425,605 ) 
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Net
     3,099,381       1,935       2,689,718       (850,852 )      (808,293 )      21,772       4,153,661  
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Software licenses
     13,104,110       2,445,784       36       (2,485,429 )      —         4,236,645       17,301,146  
Accumulated amortization
     (8,000,743 )      —         —         2,013,617       (2,667,870 )      (3,578,452 )      (12,233,448 ) 
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Net
     5,103,367       2,445,784       36       (471,812 )      (2,667,870 )      658,193       5,067,698  
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Content rights
     10,160,182       1,570,415       —         (313,942 )      —         619,657       12,036,312  
Accumulated amortization
     (8,115,229 )      —         —         —         (1,440,749 )      (503,241 )      (10,059,219 ) 
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Net
     2,044,953       1,570,415       —         (313,942 )      (1,440,749 )      116,416       1,977,093  
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total of intangibles, net
   Ps. 125,169,389     Ps. 19,260,157     Ps. 7,138,177     Ps. (431,456 )    Ps. (19,088,689 )    Ps. 1,409,389     Ps. 133,456,967  
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Goodwill
   Ps. 152,899,801     Ps. —       Ps. (7,014,120
)
(2)
   Ps. (537,343 )    Ps. —       Ps. (2,295,479 )    Ps. 143,052,859  
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
 
(1)
Restated for discontinued operations of TracFone, Panama and the Claro Chile, SpA joint venture. See Note 2Ac.
(2)
Corresponds to adjustments in Purchase Price allocation values, mainly for the spectrum licenses, in subsidiaries acquired during 2019.

 
  
For the year ended December 31, 2021
 
 
  
Balance at
beginning of
year
 
 
Acquisitions
 
 
Disposals and
other
(1)
 
 
Amortization
of the year
(2)
 
 
Effect of
translation of
foreign
subsidiaries
and
Hyperinflation
adjustment
 
 
Balance at end
of year
 
Licenses and rights of use
    Ps. 253,090,161     Ps. 24,406,905     Ps. (4,427,685 )    Ps. —       Ps. (7,011,691 )    Ps. 266,057,690  
Accumulated amortization
      (134,609,064 )      —         6,469,128       (14,387,511 )      6,737,502       (135,789,945 ) 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Net
      118,481,097       24,406,905       2,041,443       (14,387,511 )      (274,189 )      130,267,745  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Trademarks
      29,132,365       75,100       (1,129,666 )      —         (401,946 )      27,675,853  
Accumulated amortization
      (25,354,947 )      —         802,717       (140,205 )      308,745       (24,383,690 ) 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Net
      3,777,418       75,100       (326,949 )      (140,205 )      (93,201 )      3,292,163  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Customer relationships
      29,579,266       229,936       (4,133,408 )      —         (1,105,668 )      24,570,126  
Accumulated amortization
      (25,425,605 )      —         3,830,742       (707,500 )      1,093,401       (21,208,962 ) 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Net
      4,153,661       229,936       (302,666 )      (707,500 )      (12,267 )      3,361,164  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Software licenses
      17,301,146       2,660,330       (3,484,755 )      —         (1,225,585 )      15,251,136  
Accumulated amortization
      (12,233,448 )      (626 )      3,482,440       (2,738,978 )      1,052,938       (10,437,674 ) 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Net
      5,067,698       2,659,704       (2,315 )      (2,738,978 )      (172,647 )      4,813,462  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Content rights
      12,036,312       818,436       (281,747 )      —         429,319       13,002,320  
Accumulated amortization
      (10,059,219 )      —         (147,668 )      (899,666 )      (404,537 )      (11,511,090 ) 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Net
      1,977,093       818,436       (429,415 )      (899,666 )      24,782       1,491,230  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total of intangibles, net
    Ps. 133,456,967     Ps. 28,190,081     Ps. 980,098     Ps. (18,873,860 )    Ps. (527,522 )    Ps. 143,225,764  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Goodwill
    Ps. 143,052,859     Ps. —       Ps. (3,516,287 )    Ps. —       Ps. (2,958,378 )    Ps. 136,578,194  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  

(1)
Includes disposals related to the sale of TracFone.
(2)
Restated by discontinued operations of Panama and the Claro Chile, SpA joint venture. See Note 2. Ac.

 
 
For the year ended December 31, 2022
 
 
 
Balance at
beginning of
year
 
 
Acquisitions
 
 
Acquisitions
in business
combinations
 
 
Disposals and
other 
(1)
 
 
Amortization
of the year 
(2)
 
 
Effect of
translation of
foreign
subsidiaries
and
Hyperinflation
adjustment
 
 
Balance at end
of year
 
Licenses and rights of use
  
Ps.
266,057,690
 
  
Ps.
2,656,914
 
  
Ps.
95,147
 
  
Ps.
(1,785,196
) 
  
Ps.
—  
    
Ps.
(11,475,085
) 
  
Ps.
255,549,470
 
Accumulated amortization
  
 
(135,789,945
) 
  
 
—  
 
  
 
—  
 
  
 
1,436,078
 
  
 
(13,323,410
) 
  
 
5,252,171
 
  
 
(142,425,106
) 
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Net
  
 
130,267,745
 
  
 
2,656,914
 
  
 
95,147
 
  
 
(349,118
) 
  
 
(13,323,410
) 
  
 
(6,222,914
) 
  
 
113,124,364
 
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Trademarks
  
 
27,675,853
 
  
 
183,631
 
  
 
40,412
 
  
 
(66,000
) 
  
 
—  
 
  
 
(1,366,541
) 
  
 
26,467,355
 
Accumulated amortization
  
 
(24,383,690
) 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
(110,974
) 
  
 
1,041,866
 
  
 
(23,452,798
) 
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Net
  
 
3,292,163
 
  
 
183,631
 
  
 
40,412
 
  
 
(66,000
) 
  
 
(110,974
) 
  
 
(324,675
) 
  
 
3,014,557
 
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Customer relationships
  
 
24,570,126
 
  
 
22,842
 
  
 
2,863,765
 
  
 
—  
 
  
 
—  
 
  
 
(3,267,041
) 
  
 
24,189,692
 
Accumulated amortization
  
 
(21,208,962
) 
  
 
—  
 
  
 
—  
 
  
 
(18
) 
  
 
(954,256
) 
  
 
2,831,217
 
  
 
(19,332,019
) 
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Net
  
 
3,361,164
 
  
 
22,842
 
  
 
2,863,765
 
  
 
(18
) 
  
 
(954,256
) 
  
 
(435,824
) 
  
 
4,857,673
 
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Software licenses
  
 
15,251,136
 
  
 
5,108,485
 
  
 
14,205
 
  
 
(797,084
) 
  
 
—  
 
  
 
(3,358,767
) 
  
 
16,217,975
 
Accumulated amortization
  
 
(10,437,674
) 
  
 
—  
 
  
 
—  
 
  
 
976,417
 
  
 
(2,645,400
) 
  
 
2,591,274
 
  
 
(9,515,383
) 
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Net
  
 
4,813,462
 
  
 
5,108,485
 
  
 
14,205
 
  
 
179,333
 
  
 
(2,645,400
) 
  
 
(767,493
) 
  
 
6,702,592
 
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Content rights
  
 
13,002,320
 
  
 
874,961
 
  
 
—  
 
  
 
(263,798
) 
  
 
—  
 
  
 
(830,079
) 
  
 
12,783,404
 
Accumulated amortization
  
 
(11,511,090
) 
  
 
—  
 
  
 
—  
 
  
 
3,382
 
  
 
(881,352
) 
  
 
799,892
 
  
 
(11,589,168
) 
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Net
  
 
1,491,230
 
  
 
874,961
 
  
 
—  
 
  
 
(260,416
) 
  
 
(881,352
) 
  
 
(30,187
) 
  
 
1,194,236
 
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total of intangibles, net
  
Ps.
143,225,764
 
  
Ps.
8,846,833
 
  
Ps.
3,013,529
 
  
Ps.
(496,219
) 
  
Ps.
(17,915,392
) 
  
Ps.
(7,781,093
) 
  
Ps.
128,893,422
 
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Goodwill
  
Ps.
136,578,194
 
  
Ps.
14,447,186
 
  
Ps.
280,192
 
  
Ps.
(2,230,610
) 
  
Ps.
(149,696)
    
Ps.
(7,803,901
) 
  
Ps.
141,121,365
 
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
 
(1)
Includes the transaction related to Panama and Chile disposal.
(2)
Includes the discontinued operations of Panama and the Claro Chile, SpA joint venture. See Note 2, Ac.
 
b) The aggregate carrying amount of goodwill is allocated as follows:
 
 
  
2021
 
  
2022
 
Europe
      Ps.  52,307,190     
 
Ps.  49,465,916
 
Brazil
(1)
      18,017,916     
 
31,085,202
 
Puerto Rico
      17,463,394     
 
17,463,394
 
Dominican Republic
      14,186,723     
 
14,186,723
 
Colombia
      11,685,585     
 
8,495,090
 
Mexico
      10,164,814     
 
9,233,694
 
Peru
      2,532,770     
 
2,523,467
 
Chile
(2)
      2,311,239     
 
—  
 
El Salvador
      2,510,595     
 
2,522,768
 
Ecuador
      2,155,384     
 
2,155,384
 
Guatemala
      1,947,203     
 
2,245,161
 
Other countries
      1,295,381     
 
1,744,566
 
    
 
 
     
 
 
  
       Ps.136,578,194     
 
Ps.141,121,365
 
    
 
 
     
 
 
  

(1)
Includes a goodwill as a result of the Jonava acquisition. See Note 12a.
(2)
As a result of the Claro Chile, SpA joint venture, goodwill in Chile was unconsolidated. See Note 12b.
c) The following is a description of the major changes in the “Licenses and rights of use” caption during the years ended December 31, 2020, 2021 and 2022:
2020 Acquisitions
i) In February 2020, Comcel increased its licenses value by Ps. 
9,246,825
for an auction of the
30
Mhz spectrum in the
2,500
band for a period of
20
years in accordance with resolution. 325,326 and 327 of February 20, 2020 issued by the Ministry of Information and Communication (MINTIC)
ii) In 2020, Telcel acquired licenses for an amount Ps. 
1,806,875
for Axtel and Ultra Vision concession titles valid from 2020 to 2040.
iii) In January 2020, CTE acquired licenses by Ps. 
620,052
for
12
pairs of frequencies, advance payment of Advanced Wireless Services (AWS) band and complementary payment of AWS band of block 4.
iv) In 2020, TAG acquired licenses for the right of us for Ps. 
1,704,280
, in Slovenia and VIP Movil 1940E.
v) Additionally, in 2020, the Company acquired other licenses in Puerto Rico, Argentina, Uruguay, Honduras, Paraguay, Brazil and other countries in the amount of Ps. 
1,701,682
.
2021 Acquisitions
i) In December the subsidiary Claro S.A. acquired a 5G license for Ps. 17,789,163 carried out by ANATEL in November 2021, for the sale of radio frequency bands. The total amount of this license was recorded in the intangibles line on December 31, 2021.
ii) During the year, AMX’s subsidiary in Austria acquired licenses for Ps. 1,752,128.
iii) In November, AMX’s subsidiary in the Dominican Republic acquired a 5G concession and right of operation until 2041 for an amount of Ps. 2,008,503.
 
iv) AMX’s subsidiary in Colombia renewed spectrum at 5 MHZ in the 1900 MHZ band for an amount of Ps. 
1,599,473
according to resolution 2802 of October 2021, and made acquisitions of terrestrial fiber optics and submarine cable valid for
2
and
3
years.
v) In February 2021, AMX’s subsidiary in El Salvador acquired licenses for an amount of Ps.139,363. The concession is for 10 MHZ in the 1,900 mobile network bandwidth coverage in the national territory, exploitable as of February 28, 2021 with validity of 20 years.
vi) In February 2021, AMX’s subsidiary in Chile acquired a concession for Ps. 411,375 for the Concession of Band 1900 MHZ with a term of 10 years.
Additionally, in 2021, the Company acquired other licenses in Mexico, Guatemala, Brazil, Ecuador, Peru, Argentina and other countries for an amount of Ps. 706,900
2022 Acquisitions
i) In August 2022, the Company obtained in Mexico, an extension of 9 spectrum frequency band concession titles, segment 1890-1895 MHz for mobile transmission and segment 1970-1975 MHz both for 20 years from April 2025, for an amount of Ps. 
721,647
.
ii) In March and September 2022, the Company made payments for a 2.5 MHz license in Argentina, which was obtained pursuant to resolution 3687 OC 4500114567 for Ps. 304,386 and resolution 1728/22-OC 4500137839 for an amount of Ps. 411,930 of ENACOM (the communications authority in Argentina), respectively.
iii) In May 2022, the Company’s subsidiary in Nicaragua renewed mobile frequency for 20 years (2022 to 2042) for an amount of Ps. 357,478.
iv) In August 2022, the Company added licenses in Austria as of the acquisition of the Bulgarian company, Stemo (an IT company that sells and integrates hardware solutions, produces and implements information systems and software solutions). Additionally, during the year 2022, Telekom Austria Group acquired licenses and rights of use in Macedonia, Belarus and Austria for an amount of Ps. 331,038, mainly Jetstream (a data-storing platform primarily for streaming data such as IoT device or streaming video or streaming data from any source).

v) During
2022
, Claro S.A. acquired software development Claro Pay platform for an amount of Ps. 
321,569
.
Additionally, in 2022, the Company acquired other licenses in the Dominican Republic, Paraguay, Costa Rica and Colombia for an amount of Ps. 208,866.
Amortization of intangibles for the years ended December 31, 2020, 2021 and 2022 amounted to Ps. 19,088,689, Ps. 18,873,860 and Ps. 18,065,088 respectively.
Some of the jurisdictions in which the Company operates can revoke their concessions under certain circumstances such as imminent danger to national security, national economy and natural disasters.